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Many mortgage lenders are hiding favourable standard variable rates from new borrowers in an attempt to put them on costlier rates.

Mform.co.uk found that few borrowers are now able to access SVR products because most of the high street banks have all stopped advertising their SVRs to new applicants.

The SVR has historically been for borrowers whose term has run out. If a borrower did not remortgage, or could not, they would be stuck with a higher, inflexible mortgage. But now, the SVR is one of lenders’ most inviting offers thanks to banks having been forced to bring them more in line with the 3% Base Rate. Also, SVRs do not have fees and penalties attached to them as they are supposed to be the default deal.

Now these could be great for people who are struggling to meet payments each month, or who have debt problems. But Mform found people are not able to access these rates as lenders will simply hide them, preferring to offer less competitive trackers or fixed rate mortgages.

Francis Ghiloni, marketing and business development director at mform.co.uk, says: "In the past SVRs were the default for borrowers who could not or would not search out better deals. Now there are exit fees and application fees it is even more important that customers assess the true cost of the mortgage. Lenders should be more transparent with their pricing policies.”

Whatever rates are out there, the best way to see them all is to ask a broker. Just because an SVR is the cheapest rate, doesn’t mean it is the best deal, especially for those with debt issues. And regardless of lender transparency, a broker can see everything that is out there and can find you the single best deal for you.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.